Scatec has signed an agreement with Globeleq to sell its 52.5% equity share in the 40 MW Mocuba solar power plant in Mozambique for $8.5 million, in line with the company’s strategy to divest smaller assets.
“This transaction is in line with our strategy to optimize our portfolio, which includes the divestment of smaller assets in non-focus markets. The sale will release capacity for our focus markets and capital for new investments in renewable energy. We are very pleased to secure a value accretive transaction and are confident that Globeleq will be a solid owner of the asset going forward,” said Scatec CEO Terje Pilskog.
Globeleq is an independent power producer in sub-Saharan Africa, with over 2.1 GW power production capacity in operation or under construction. The company is owned 70% by British International Investment and 30% by Norfund.
The Mocuba solar power plant is located in the Zambézia Province of Mozambique and was commissioned in August 2019. The project has an annual production of approximately 75 GWh and holds a 25-year PPA with the state-owned utility, EDM. As part of the transaction, Globeleq will assume responsibility for operations & maintenance and asset management services for the power plant.
The transaction is expected to generate a net accounting gain of approximately $4 million on a consolidated basis and $3 million on a proportionate basis. The final accounting effects will be determined on closing of the transaction. The transaction is subject to the customary consents and is expected to close in the first half of 2024.